For small business owners, effective tax planning isn’t just about saving money at year-end it’s about building a sustainable, profitable business all year round. With the right strategies, you can minimise liabilities, maximise allowances, and reinvest more into growth.

At Modus Accountants, we help Oxfordshire SMEs stay compliant while making the most of every tax-saving opportunity.

1. Why Tax Planning Matters

• Keeps more cash in your business.
• Ensures you’re compliant with HMRC rules.
• Reduces stress at year-end.
• Supports long-term growth and investment.

2. Key Tax Planning Strategies

a) Choose the Right Business Structure

Should you be a sole trader or limited company? The answer can affect how much tax you pay. Limited companies often allow greater tax efficiency, but it depends on your circumstances.

b) Make Use of Allowances and Reliefs

• Annual Investment Allowance (AIA) – claim relief on qualifying purchases.
• Business Asset Disposal Relief (BADR) – reduce CGT when selling your business.
• R&D Tax Relief – available for innovative companies, even smaller ones.

c) Extract Profits Efficiently

Consider a tax-efficient mix of salary and dividends, pension contributions, or reinvestment into the business.

d) Plan Ahead for VAT

Choosing the right VAT scheme (flat rate, cash accounting, standard) can save thousands per year.

e) Don’t Forget Personal Tax

Plan for ISA allowances, pensions, and family income splitting where appropriate.

3. Common Tax Planning Mistakes

❌ Waiting until year-end to think about tax.
❌ Not keeping accurate financial records.
❌ Missing out on reliefs due to poor advice.
❌ Taking profits in a tax-inefficient way.

For common accounting mistakes and how to avoice them, click here.

4. How Modus Helps

We work with businesses across Witney, Oxford, and Oxfordshire to:

• Create tailored tax strategies.
• Ensure compliance with the latest legislation.
• Provide proactive advice, not just year-end numbers.
• Align tax planning with business growth goals.

FAQs – Tax Planning

Q: Can I really save that much with better planning?
Yes — even small changes in how profits are taken or assets are purchased can make a big difference.

Q: Do you help with personal and business tax together?
Yes — we look at the whole picture to optimise both sides.

Q: How often should I review my tax position?
At least annually, but ideally quarterly with management accounts.

Next Steps

If you’re ready to keep more of your hard-earned profits and reduce tax stress, we can help.

📞 Call us today on 01993 225030, email hello@modus-accountants.co.uk or click this click to book your free 30 minute call – contact us